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This is a guest post by Trisha Wagner, a freelance writer for DepositAccounts.com, where you can compare rates of checking accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.
If you have been paying attention to the news in recent weeks, you probably know that legislation to regulate the billing practices of credit card issuers is a hot topic. As more and more Americans struggle to keep afloat during the recession, this credit card reform at first seems like a win-win situation for everyone. Unfortunately that is not the case. In fact, the rules that are supposed to help consumers may inadvertently backfire making the situation worse for all credit card holders. Here are a few changes card holders can expect as a result of the credit card reform.
Someone has to pay
That someone will likely be card holders who have managed their accounts responsibly in the past. Consider the fact that in addition to limiting the ability of card issuers to charge whatever they please, banks are hemorrhaging money due to account holders defaulting on their payments. In an effort to recoup the money banks make on interest, fees and other penalties, it is likely they will turn their attention to people who are able to pay their balances.
It will be more difficult to get credit
Credit cards will no longer be handed out like candy at Halloween. Forget about fair or good credit, expect to see only those at the highest end of the credit score spectrum getting credit in the immediate future.
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